Sister Joining As Co-Provider.. How To Split Income?

[LeslieG]

I'm so excited to have my sister joining me as co-provider next month!! I'm just not sure how to split payments between us. Does anyone have experience with this?

She doesn't have kids of her own right now. I have a 2 year old son and a baby on the way. So my children will be taking up spots in our program. Daycare is run in my home and so fast all the toys and supplies have been purchased by me.

I want to split income in a way that's fair... even if that means an unequal split.

[Blackcat31]

I'm so excited to have my sister joining me as co-provider next month!! I'm just not sure how to split payments between us. Does anyone have experience with this?

She doesn't have kids of her own right now. I have a 2 year old son and a baby on the way. So my children will be taking up spots in our program. Daycare is run in my home and so fast all the toys and supplies have been purchased by me.

I want to split income in a way that's fair... even if that means an unequal split.

I wouldn't split income. Business is conducted in your home. YOU get to claim all the deductions and T/S% so that makes you the business owner.

I'd hire your sister as an employee and pay her as such.
Better for you in the long run.

[rosieteddy]

I second hiring your sister.That way you still have income to pay housing costs ect.I hired my daughter for a short time and paid an hourly wage.Do a contract and spell out specifics vacation days holidays ect.Look into what taxes need to be paid as well.

[sharlan]

Don't forget all of the utilities and house maintenance, plus food and supplies. There are a lot of little expenses that come before there is any profit.

Don't short change yourself.

[CityGarden]

I met a sister pair..... and they were/are true co-providers.

They have two houses on one lot both homes have their own license both are lead teachers with an assistant. They share a school name, marketing, a play yard, open houses, etc. their program more operates as a small commercial preschool with two classes but is a home based program. They split director duties. One of them owns both homes so the other pays rent to that one..... not sure how the split all the $$$ but it was a beautiful set up.

[hwichlaz]

If you want to split, the decision should be made based on profit, not gross reciepts.

[NeedaVaca]

I wouldn't split income. Business is conducted in your home. YOU get to claim all the deductions and T/S% so that makes you the business owner.

I'd hire your sister as an employee and pay her as such.
Better for you in the long run.

Agree with this. How many children will you provide care for?